Council and housing association rents look set to rise steeply if proposals from the government and the Mayor get the go ahead.

They claim the money is needed to build more affordable homes but critics say the plans will drive people on low incomes away from some parts of London.

I know there is a resentment here of those fortunate enough to occupy council/social housing in London, but doubling their rents can only increase house prices. Why? Those out of work or claiming benefits will probably get most of the rent paid from Housing Benefit (ok so they may have to do illegal p/t work if HB doesn't cover all the rent), but what about those in decent paying jobs? They'll look to buy somewhere asap (if only in zone 4,5 or 6) once the rents start to rise.

Well done, the jealous bigrade. You've now made an overpriced housing market even worse.

Chrimbo 2011-12 predictions Really I do not have a clue. It could all change, or it could stay the same!

Can't watch the video. But I don't understand the caption paragraph. I thought rents were being cut??

Remember that buying a house is a highly leveraged investment and can result in losses that exceed your initial deposit. Buying a house may not be suitable for everyone, so please ensure that you fully understand the risks involved.

"The time to buy is when blood is running in the streets" Baron Nathan Rothschild

Can't watch the video. But I don't understand the caption paragraph. I thought rents were being cut??

Nope, but they are trying to stop high housing benefit pay-outs.The govt policy is to change the current social rent (which is about 30% of private) to something called "fair rent" which is 65-70% of the private market value.What do you think those who are earning good money will do, as they realise their rents will more than double? Either a) buy B ) move away or c) stop working and claim hb.Those who move away will find their flats/homes snapped up by benefit claimants.But those who now decide to buy will add to the demand for housing in London, unless they all buy the place they currently occupy.

Chances of a London HPC now? Zero, I would have thought?

Edited by Trampa501, 03 March 2012 - 08:20 PM.

Chrimbo 2011-12 predictions Really I do not have a clue. It could all change, or it could stay the same!

Remember that buying a house is a highly leveraged investment and can result in losses that exceed your initial deposit. Buying a house may not be suitable for everyone, so please ensure that you fully understand the risks involved.

"The time to buy is when blood is running in the streets" Baron Nathan Rothschild

As I've posted on here before they are putting up social rents in areas, and on properties (one bed flats) where they are starting to push private (bubble) rents (I refuse to use the term "market rent").

Social rents are not just rising in London. For instance my social rent in West Yorkshire will increase from £57.29 per week to £64.62 from April 2nd (and partially because service charges cannot be hidden in the rent).

Admittedly there is a greater disparity with family homes.

Edited by "Steed", 03 March 2012 - 09:37 PM.

"Capitalism has defeated communism. It is now well on its way to defeating democracy" ~ David Korten

“To think output and income can be raised by increasing the quantity of money, is like trying to get fat by buying a larger belt” ~ John Maynard Keynes

Libertarian = someone who acquired capital via system he claims to oppose, now wants to lock in gains

I know there is a resentment here of those fortunate enough to occupy council/social housing in London, but doubling their rents can only increase house prices. Why? Those out of work or claiming benefits will probably get most of the rent paid from Housing Benefit (ok so they may have to do illegal p/t work if HB doesn't cover all the rent), but what about those in decent paying jobs? They'll look to buy somewhere asap (if only in zone 4,5 or 6) once the rents start to rise.

Well done, the jealous bigrade. You've now made an overpriced housing market even worse.

I don't follow your argument at all.

There will be less public resources going into subsidised housing, so that hardly sounds like the sort of thing likely to increase prices. Social rents will still be below market rates, hence there is very little chance of anybody wanting to leave for similar-sized accommodation elsewhere. The only effects I can foresee are i) increased interest in RTB, ii) benefits no longer covering the largest council properties, and iii) people not wanting to live in disproportionately large council houses.

Even if the effect was somehow to increase prices, subsidising the rents of an arbitrarily chosen part of the population who can afford to pay for it on their own would still be a very poor use of public money.

Not on existing ones. This whole argument is about rents on newly built properties billed as affordable homes, which are much more expensive than old council/social rents.

I thought all new council tenants would face much higher rents anyway, of around 80% of the market rent? It seems to me that either the article below or the BBC report is confused, though they both mention the 80% figure.

Where I live, rent as well as house price is back to 10 years ago if not cheaper. Not sure if this is the direct result of HB cuts, but good news anyway.

London is always a special case.

The woman in that video have a two bed flat to herself. She talked as if it is her divine right to live there. I have friends on above national average income that have been living in bedsits for 10 years in London, because they do not breed like HB claimants. Madness.

One thing is clear. We can’t go on with the old model of an economy built on debt. Irresponsible public spending, an overblown banking sector, and unsustainable consumer borrowing on the back of a housing bubble were the features of an age of irresponsibility that left Britain badly exposed to the economic crisis. Now, with the national debt already doubled and in danger of doubling again, it is this debt – together with the jobs tax that Labour will introduce to help pay for it – that threatens to kill the recovery.

One thing is clear. We can’t go on with the old model of an economy built on debt. Irresponsible public spending, an overblown banking sector, and unsustainable consumer borrowing on the back of a housing bubble were the features of an age of irresponsibility that left Britain badly exposed to the economic crisis. Now, with the national debt already doubled and in danger of doubling again, it is this debt – together with the jobs tax that Labour will introduce to help pay for it – that threatens to kill the recovery.

I know there is a resentment here of those fortunate enough to occupy council/social housing in London, but doubling their rents can only increase house prices. Why? Those out of work or claiming benefits will probably get most of the rent paid from Housing Benefit (ok so they may have to do illegal p/t work if HB doesn't cover all the rent), but what about those in decent paying jobs? They'll look to buy somewhere asap (if only in zone 4,5 or 6) once the rents start to rise.

Well done, the jealous bigrade. You've now made an overpriced housing market even worse.

I did high light the higher rents to people, they are rising social rents to use as a tool to justify private rents, they arent going to build more, they are now looking for extra income and social housing is one of them.They are trying to diffuse the argument for more social homes to be build, what this would do its restrict even more homes being built, private rents will go up aswell, these people in power have no idea how to run a country they are pushing for a revolution in this country and leading us to be the most uncompetitive driving more jobs offshore.